My Husband Bought a Starter Home at 23. Here's How He Pulled It Off

When my husband was 23 years old, he purchased a starter home on his own. Even though he'd only been out of college for about a year, he had savings to use for a down payment on a mortgage as a result of having worked during his studies and getting a good job after graduating.

I didn't know my husband at the time he bought this house. But once we got together, I wound up moving into that home and living it in for a handful of years. In fact, it was the equity from that home that allowed us to upsize to a larger house about 14 years ago despite the much higher mortgage that came with it.

But while buying a home at 23 was feasible for my husband, it may not be as doable today. Here's why.

A totally different housing market

My husband bought his starter home in 1999. During the first quarter of that year, the average U.S. home sold for about $189,000, according to the St. Louis Fed.

That's very much not the case today. These days, the average home sale price is about $495,000. That's more than 2.5 times what homes were selling for when my husband was looking to buy.

Also, my husband bought a home before the housing market crashed in 2008. Back then, mortgage lenders were more lax in terms of approving home loan candidates. They also had lower requirements for down payments.

Now, my husband happened to be a strong borrowing candidate at 23. He had a steady job, a solid down payment, and excellent credit.

But even so, it's important to acknowledge that borrowing requirements have changed throughout the years. And these days, it may be harder for a 23-year-old to purchase a home by virtue of simply not having had enough time to establish a steady income history.

What's interesting is that at the time my husband bought his home, the average 30-year mortgage rate was around 7%. That's comparable to where rates are sitting today. But because of the huge gap in home prices, a 7% mortgage rate was much less problematic back then than it is today.

In fact, let's compare the monthly payments on a 30-year mortgage for a home selling for $189,000 versus $495,000, assuming a 20% down payment. At 7%, for the former, you're looking at a monthly payment of $1,006 for principal and interest. For the latter, you're looking at $2,634.

You can buy a home today at a young age, but it won't be easy

Clearly, it was a lot more feasible to buy a home right out of college two decades ago than it is today. But that doesn't automatically mean that homeownership is off the table for younger buyers.

If you have a great job and a sizable down payment, you might qualify for a mortgage, especially if you're able to secure a letter from your employer attesting to the fact that your job is high in demand and secure. And if you earn enough, it may be that you can afford a mortgage today on a 23-year-old's salary.

But if you aren't successful in buying a home today at age 23, don't beat yourself up, either. It's hard enough these days to buy a home at 33 or 43, let alone 23. And also, waiting to buy could work to your benefit.

If you buy a home at 23, you may not yet be settled in terms of a relationship or career. So it may be better not to commit to a specific location until you've had more time to explore your options.

When I first met my husband, I told him I found it surprising that he was willing to commit to a home purchase at such a young age. His response? "I guess I'm just a commitment sort of guy."

I don't know if he said that to win me over or whatnot, but in the end, buying a home at a young age worked out well for him. If you're able to pull off a home purchase at a young age, it might work out great for you, too.